Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1913-11-29
AMERICAN CAN
COMPANY IS
A TRUST
so ALLEGES THE DEPARTMENT OF
JUSTICE IN A DISSOLUTION SUIT
FILED At BALTIMORE, IN WHICH
IT IS ALLEGED THE CAM COMPANY
ENGAGED IN UNLAWFUL ACTS.
DOMINATION OF the
MARKET is ABSOLUTE


Baltimore Md, Nov. 29.--Suit was
filed here today in the United States
district court to dissolve the American
Can company, the so-caIled tin can
trust, which the department Of JUS
tice alleges controls a large percent
age Of business in the United States
in tin cans, containers and packages
oe tin. The American Sheet and Tin
Plate company was made defendant
because of an agreement it is alleged
to have with the American company
to sell it tin for cans at a preferential
rate.
In its complaint the government al
leges practices in restrain Of trade,
agreements by other concerns, mot to
enter the fields, contracts by consum-
ers to buy from the trust exclusively
and arbitrary fixing of prices, Attor-
ney General McReynolds asked in the
bill for a dissolution other than on
pro rata basis by asking for separa-
ton into units of different ownership
to insure the restoration of competi-
ton
The governments bill was filed by
VIM. r. Chantland special assistant to
the attorney general, and was signed
by w. G. Todd, the assistant to the at
torney general in charge of trust pros
ecutions.
1t declares that the alleged conspir.
acy and combination in restraint of
trade was entered into in 1901. }. Ho-
bart Moore, Daniel G. Reid, Fred S.
Wheeler, Henry W. Phelps, William
r. Graham and George G. McMurty
are named as active in its formation
The American Can company, the prin-
cipal defendant. was incorporated in
New Jersey with capital of $8S,000,-
600 and within few months, the gov
ernment charges, obtained control of
about 100 Can manufacturing plants
which formerly had been independent.
The government hopes to prove that
for some time after organization the
American company controlled about
IS per cent OF the trade. While that
Quantity is admitted to have diminish
ed, it is said now to be close to be
fifty per cent and the American com.
pany 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 manufacture
within radius of 5000 miles of Chi
cago for fifteen years subsequent to
their acquisition.
The government alleges that the
company has at times increased the
price of cans and that its domination
Of the market is so absolute that such
Independents as have come into being
have been forced TO follow its prices
1t has compelled customers, the gov
ernment charges, to make long term
contracts to purchase cans exclusive
lv from it and used other methods of
getting trade familiar to such commits
sions.
Under the new rules of the court
the defendants must appear and an
swer within twenty days after the
service of the subpoenaes and bill of
complaint, The documents will be
issued next Monday.
New York, Nov. 29.-President
Wheeler of the American Can COM
pany. made the following statement to-
day:
'This company is not disturbed by
the action of the government. Neither
in it's origin nor in the conduct of its
business has monopoly or restraint OF
trade been attempted No unfair
competition" has been resorted to-.
There have been no agreements or
understandings as to prices. The
company has not sought in any way
to dominate the trade, nor has it any
such share of it (only about one-third)
as would enable to do so if it wanted
to- Competition is free and active.
The company will defend the suit Wig
orously and confidently, and it is the
belief of it's officers and counsel that
no one interested in the company need
feel any uneasiness as to the outcome
The American Can company, known
in Wall street as a Reid Moore con
cern, was organized under the laws of
New Jersey in 1901, as consolida-
ton of several large factories in vari
Gus parts of the country.
Daniel G. Reid, and W. II. Moore,
who are interested in many other cor
porations, including the U. S. Steel
corporation, were it's chief promoters
and Mr.. Reid became chairman of its
board of directors.
The company was capitalized at
sSS, 900, 900 of which $S2.00O,000 is out
standing, equally divided between pre-
ferred and common stock. The pre-
ferred. which is per cent cumulative,
did not for several years pay full divi-
dends, but on January 1 of this year,
the company paid off "a per cent in
back dividends, thus accumulated,
leaving only about 8 per cent still to
be made up. 1t has a funded debt of
100000. Many factories are now
owned by the company, located in the
United States and Canada, with one
in the Hawaiian islands. Among its