The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1918-10-18
NOTE 5ooK SKETCHES


violation of the Sherman anti-t trust law
against the Sumatra Tobacco Import
Corporation, the Sumatra Corporation,
the General Cigar Co., American Cigar
Co., H. Duys & Co., Inc, and fourteen
individuals, officials of either these or
member corporations Among the spe-
cific acts complained of in the indict-
ment are allegations that the importers
agreed to fix a price on leaf that would
yield $50 per bale net profit, less one
per cent for brokerage; that the distri-
button was to be confined to the in
lent handling of the product the import
and purchasing companies were organ
lzed; that the Amsterdam Tobacco
represented in the United States by H.
Duys & Co., was to receive part of
the imported tobacco with the proviso
that none of it should find it's way to the
United States; that the American Ci-
Otto Eisenlohr & Bros, competing ci-
first selection Of the leaf at a price
substantially less than that to other
purchasers; that all were forbidden to
dispose of the leaf in any other form
but cigars without written consent of
the Purchasing company and that the
defendants were guilty of Inducing,
coercing and compelling by fraud, de-
ceptien, intimidation of persuasion sub
stantially all of the users of said tobac-
co in the United States" to purchase it
of the defendants.
If the charge of conspiracy will lie
the most remarkable conspiracy ever
prosecuted under the antitrust laws.
The popular conception of a ''conspir-
acy' is movement inspired and con-
Quoted in secrecy. 1t will scarcely be
gainsaid that secrecy is of the essence
of the offense. But here is conspir-
the broadest light of day; where the
contracting parties were well known
and their every move widely advertised
to the trade and the public. Finally,
the "conspirators" must have received
the assistance of at least several
branches of the Government in prose-
cutting their conspiracy" to a success
full conclusion, for the operation under
which the inscriptions were transferred
from Amsterdam to New York City
must have been assisted more or less
by the Department of State, the War
Trade Board and the Shipping Board.
~
In a statement made to Tobacco
Leaf representative, John II. Duys,
president of the indicted corporation,
said: 1.-THE indictment by the Federal
Grand Jury came as great surprise to
US. Of course, it must be understood
that only one side was heard and our
story is still to be told. In my opinion
the plan of operation of the Sumatra
Purchasing Corporation was the only
feasible one under war conditions and /
believe all of our subscribers who COM
prise practically every leading Sumatra
using cigar manufacturer in the United
States and Canada, agree with US. 1t
is charged that we cOerced and lntlm-
idated our customers to sign our con-
tracts. Quite the opposite in the case,
which trade history has shown and
can easily be proven. We feel very
secure in our position, especially so
judging from indications that practlc-
ally the entire cigar trade is behind US.
If we have broken any laws we have
done SO unintentionally and with the in
terest of the industry at heart. We
know that our customers are fully sat
isfied and we have done the best we
could under difficult and unprecedented
circumstances. The United States gov
ernment and Allied governments have
given the example that cooperative
buying during war times is the only
feasible plan, and I know that the
Dutch tobacco growing monopoly would
be delighted if ten to twenty indepen-
dent buyers from the United States
should go to the Island next year, and
again make possible the sale of the
Sumatra crop by inscription. When
the manufacturers come to New York
for the next allotment on October 21st,
my directors and myself will be pleased
to call joint meeting to discuss plans
for next years operations. One ques-
tion I would like to ask is, Who has
has been hurt? In view of the fact
that the manufacturers of the country
have been supplied with sorely needed
stock of wrappers at prices which they
themselves declare to be fair valua-
ton, certainly not the manufacturer.
Another thing with which our critics
must credit us is the fact that when
the inscription method was found to
have tendency to raise prices, we
adopted the present system of distribu-
tion, notwithstanding the fact that the
inscription method has been the accept
ed method employed in Holland for the
past thirty-fve years. In spite Of the
satisfactory financial returns from the
inscription method, the plan of opera
tion was changed by the Sumatra Pur-
chasing Corporation, in order that its
service to the trade might be enhanced.
In sense the Corporation became
banker for the entire trade as well as
the purchasing agent. No distribution
could have been more equitable. The
man in need of but ten bales was given
the same consideration as the purchas-
er of 5000 bales and the tobacco was
supplied to the small buyer at practlc-
ally the same prices"
***
The old nickel cigar, we are told, has
NL..% 1NlE4rVT TwNakn