Evening star., 1913-11-29
SUIT TO DISSOLVE
AMERICAN CAN CO.
Government Begins Action in
Baltimore Court Against
So-CaIIed Trust.
PRACTICES ARE ALLEGED
IN RESTRAINT OF TRADE
President Wheeler. in Statement,
Says Concern Has Not Sought to
Dominate Business.

BALTIMORE, November o9.-Suit was
filed here today in the United States dis
trict court to dissolve the American Can
Company, the so-called tin can trust
which the Department of Justice alleges
controls a large percentage of business
Of the United States in tin cans. contain
ers and packages of tin. The American
Sheet and Tin Plate Company was made
a defendant because Of an agreement It
is alleged to have with the American
company to sell ii tin for cans at pref
erential rate.
In Its complaint the government alleges
pracuces in restraint of trade, agreements
BY absorbed concerns not TO re-enter the
neid. contracts by consumers to buy from
the trust exclusively and arbitrary fix
ing of prices.
Attorney General McReynolds asked in
the bill for dissolution other than on a
pro rata basis, by asking for a separation
into units of different ownership to insure
the restoration Of competition.
Conspiracy to Restrain Trade"
The governments bill was filed by
William T. Chantland. special assistant
to the Attorney General. and was signed
by w. c. Todd, the assistant to the At
torney General in charge of trust prose
cution.
1t declares that the alleged conspiracy
and combination in restraint of trade
was entered into in 1901. ]. Hobart
Moore, Daniel G. Reid. Fred S. Wheeler,
Henry w. Phelps, William I. Graham
and George G. McMurty are named as
active in its formation. The American
Can Company. the principal defendant.
was incorporated in New Jersey with q
coni ifo1 of a few
months. the government charges. OBJ
tanned control of about one hundred here
tofore independent tin can manufacturing
plants. scattered over the country.
Claim It Dominates Business.
The government hopes to prove that
for some time after organization the
American company controlled about 81
per cent of the trade. While that guam
tity is admitted to have diminished II
is said now to be close to 20 per cent, and
the American company is declared to be
the dominating factor in the business.
In agreements made with the American
company by the concerns It absorbed
they were not to engage in tin can manu-
facture within a radius OF 3.OOO miles oi
Chicago for fifteen years subsequent &c
their acquisition.
The government alleges that the COM
binatiOn has at times increased the pric,
of cans and that its domination of tn.
market is so absolute that such indie
pendents as have come into being hav.
been forced to follow its prices. 1t ha.
compelled customers. the government
charges, to make long-term contracts Il
purchase cans exclusively from X, emo
used other methods of getting trade ia
miliar to such combinations.
Under the new rules OF the court the
defendants must appear and answer with
in twenty days after the service OF the
subpoenas and bill of complaint. Thes.
documents will be issued Monday.
Statement Of Can Company Head.
NEW YORK, November 29.-Presideni
Wheeler of the American Can Company
made the following statement today:
This company is not disturbed by the
action of the government. Neither II
its origin nor in the conduct Of its bust
ness has monopoly or restraint Of trade
been attempted. No unfair competition
has been resorted to. There have beer
no agreements or understandings as t.
prices. The company has not sought il
any way to dominate the trade, nor ha.
it any such share Of it tonly about one
third as would enable it to do SO II II
wanted to. Competition is free and
active.
THE company viii defend the suit Wig
orously and confidently. and it is the be-
lief of it's officers and counsel that nc
one interested in the company need fee
any uneasiness as to the outcome
The American Can Company, Known
in Wall street as "a Reid Moore concern
was organized under the laws of New
Jersey in 1901 as a consolidation Of sew
eral large factories in various parts OF
the country. Daniel G.. Reid and w. H
Moore who are interested in many other
corporations. including the United States
Steel Corporation. We're its chief pro-
promoters, and Mr.. Reid became chair
man of it's board of directors.