The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1911-01-07
ARGUMENT IN
TOBACCO CASE
BEGUN BEFORE U. s. SUPREME
COURT LATE YESTERDAY
AFTERNOON.
HISTORY OF THE TRUST
Given BY Attorney Fer Government
in Opening Address--American
Tobacco Co. Controls
Business.

Washington, jan G--The oral argu-
ments on tie proposed dissolution 81
the so-called tobacco trust We're be-
gun late today in supreme court Of
the tlait,l states.
AS a year ago, when the dissolu-
tion suit was argued for the first time
before The court, SO today J. S. Nc
Reynolds, special assistant to the at
torney general In charge of the tobac-
co fight fer the government. male the
opening address. He had not con-
cluded his remarks when court all
journed until Monday, BY arrange
ment the counsel Oh both sides
agreed to conclude their arguments
In IL hours.
This viii bring the close Of the pre-
sentation about 3 O'clock next We'd
nssday afternoon.
MI McReynolds surprised some
members Of The court by saying that
the dissolution was asked not ONLY
under the Sherman law, but under the
Wilson tariff law OF 1894
Much discussion has taken place in
the "trI,gtN case as I'd Whether or not
the phrase restraint of trade" as
used iii tie antitrust law was eauiya-
lent to "regtraint Of free competi-
ton"
Mr.. McReynolds pointed to the viii
son act as the congressional inter
ncetation OF the Sherman act, passed
four years previous, in which al
doubt as to tna mea ag bad ben +,
moved by using the phrase 'restr ut
Of free competition
Neaflv tae e9tire tin that W Mc-
Reynolds spoke was devoted to a
ssiiseory AZ the ae-eaaled stobacce
trust" from the time the FIRST Amer
can Tobacco Company VS. organized
in 1890 for ire ale eli purpose Of Ell
fccting molopoly Ia the cigarette
trade thus avoidjng tie competition
of Independent concerns, down to the
incorporation In 1904 of the new
American Tobacco Company, and hold
ing company, controlling IS compam
les interested In various branches OF
the tobacco business.
The suit under tae Sherman anti
trust law to dissolve the socalled
Tobacco trust" was instituted in
1907 in the circuit court Of 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, 1t began in
January, 1890. Then the first Ameri
can Tobacco Company was incorpor-
ated for the purpose, it is alleged, OF
taking over the business of five indie
pendent cigarette plants.
In 1898, the Continental Tobacco
Company was incorporated for the al
~Nleged purpose CT taking over the plu2
tobacco business Of the America To
bacco Company anl the business oil
five other plug tobacco concerns.
In 1900, the Smerican Snuff Com
pany was incorporated for the alleged
purpose Of taking over tle snuff bust
ness Of the American Tobacco Com
pany aud two or three Independent
SNUFF manufacturers.
In 1901. the American Cigar Com
pony was incorporated for the alleged
purpose Of taking over the cigar bust
ness CT the American Tobacco Com
pany and an Independent manufac
turer Of cigars.
In the same year, the Consoidatet
Tobacco Company was incorporated
for the alleged purpose Of taking over
as a holding company in exchange fol-
its bonds substantially all of the
stock Of the American Tobacco com
pany and the Continental Tobacco
Company.
In 1903, the American Stogie Com
pany was incorporated for the alleged
purpose of taking over the stogt
business of the American Cigar Com
pany, the American Tobacco Com
pany ana the COnunental Tobacco
Company. 81 tNT
In 1904, the American Tobacco com
pany. the Continental Tobacco Con
.pany and the Consolidated Tobacc
Company We're merged into the pres
eut American Tobacco Company.
II is alleged that In addition to thi
organization, The American companie
in 1902 entered into contract with
British company, tire Imperial Tobac
co company, whereby the American
companies were limited ii their bust
ness to America and the British h
Great Britain, except that the Latte
corM buy leaf tobacco In the Unite,
States. It was alleged that the Brit
Concluded ,,r age.