Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-01-05
BIG TOBACCO TRUST
Fighting FOR LIFE:
AnolJMENra IN euPREME COURT
ON APPEALS OF BOTH
SipEe.
GOVERNMENT HALF WON
IN y. .. CIRCUIT COURT
Portjens Of Companies Alleged TO es
IN Combine Enjeinsd and Others Ex-
~ ..rn&ad-osvernmsn Sought 70 Show
Combination Extended 70 Groat
pritain-history Of The csss.

washington, Jan. 5.-The second
saght Of the American tobacco corpora
ton against dissolution by decree OF
the supreme court Of the United States
under the Sherman antitrust law be-
ran today when their attorneys ad-
yanced q fusillaae Of arguments IN oe-
half Of their cause.
The suit under the Sherman anti
trust law, to dissolve so-called TOBACCO
trust" was instituted In 1907 IN tho
circuit court Of the United States lor
the southern district Of New York. Ine
nroceedings were brought by the oe-
partment Of justice against more tnan
sixty corporations and a number OF IN
d,vidual defendants headed by James
B. Duke.
The process Of organization OF the
combination alleged to be unlawtul
spread over many years. 1t began III
January, 1890. Then the first Amer
sican Tobacco Company was incorpo-
rated for the purpose. it Is alleged, OF
taking over the business OF five lnoe-
pendent cigaret plants.
Growth Of Combine.
In 1895, the Continental Iopacco
Company was incorporated for the al
legged purpose Of taking over the plug
tobacco business Of the American To-
hacco Company and the business OF
I'VE other plug tobacco concerns.
In 1900. the American Snuh Conn
many was incorporated for the alegeo
purpose Of taking over the snun bus
ire.. OF the American Tobacco Com
many and Of two or three independent
snuff manufacturers.
In 1901 the American Cigar Com
many was incorporated for the aiegeo
n,,rnose Of taking over the cigar bus
sness of the American Tobacco Com
many and an Independent manufactur-
e Of cigars.
In the Same year. the Consolidated
Tobacco Company was incorporated for
the aneted purpose OF taking over az
- holding company In exchange Tor It's
bonds substantially all Of the stock OF
the American Tobacco Company and
the Continental Tobacco Company.
In 1908, the American Stogie Com
pany was Incorporated for the alleged
purpose of taking over the stogie busi-
ness OF the American Cigar Company.
the American Tobacco Company. and
the Continental Tobacco Company.
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.
Extends to Great Britain.
It il alleged that in addition to this
organization. the American companies
In 1902 entered into a contract with
British company, the Imperial Tobacco
Company. whereby the American COM
panies 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.
It was alleged that the British -Ameri-
can Tobacco Company was organized
the British and the American compan-
les.
Controlled the Market.
Testimony was presented to prove
TINT the defendants produced 20 per
cent Of the smoking tobacco made in
this county: 70 per cent Of the cigarets,
81 per cent Of the plug and twist to-
lbacco: 81 per cent of the fine cut to-
bacco: 80 per cent of the little cigars;
s6 per cent Of the snuff; 95 per cent Of
the licorice paste: Is per cent Of the
tin foil and most Of the tobacco ex-
tracts, boxes and containers.
Three Of the four judges on the cir
cult bench united in a decree. This
decree dismissed the petition as to the
Imperial Company and the British
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.
Another Ground For Appeal.
The decree adjudged the other de-
1endants to be parties to an unlawful
combination, but said nothing about
the monopolizing charges. This fall
:nre furnished another ground for ap-
peal ~ the government. The American
.Tobaceo Company. the American SNUFF
Company. the American Cigar Com
pany. p. Lorillard Company, r. ].
Reynolds Tobacco Company. Black
wells Durham Tobacco Company and
the Conley Foil Company were ad-
Judged to hold shares in number Of
specified tobacco corporations and en-
Joined them from acquiring the plants
or business or voting the shares Of and
from exercising control over these
companies. The govern
ment was dissatisfied because the hold
Ing companies were not enjoined from
collecting dividends from tn. subsi-
diary companies.
The defendants appealed to the su.
peeme court because the petition Of the
governnent was not dismissed in to.
tai.
Charged With Custom Frauds.
3 ISew Turk, !y:: s-Asa. Rube1. pres-
t0ent. and Louis J. F1nkelstein. secre-
s1Afys of Max Rubel q Co. manufac-
4es1 oe suits and clerks at - Fifth