The sun., 1918-10-08
II INDICTED FOR Big
TRUST IN TOBACCO
$20,000,000 Involved in Con.
troll Of Imports Of Two
Sumatra Leaf Crops.
CONSPIRACY Is ALLEGED
Defendants to Plead Before
Federal Judge Clayton on
Two Indictments.

Three companies that import sun,atrx
leaf tobacco and fourteen indivduaM
connected with them were indicted by q
Federal Grand Jury yesterday on
charges Of conspiring to violate the anti
trust and tariff laws. The defendants
are accused OF having acquired a mo-
nopoly OF all the 1916 and 1917 crops
shipped to the United States. Sumatra
leaf tobacco Is used to wrap nearly one.
half OF the cigars made in the Unit,d
States each year
1t ia alleged that Fl. Duys l. Co., ths
General Cigar Company. Inc. and the
American Cigar Company, through their
officers and the officers OF other concerns
formed the Sumatra Tobacco Import
Corporation as the corporate device for
controlling 1916 crop shipments to
America and the Sumatra Purchasing
Corporation for the 1917 crop. which 10
in process Of delivery at this time These
two companies also are named as de-
PENDANTS.
An agreement is alleged by which the
American Cigar Company. the General
Cigar Company and Otto Eisenlohr 4
Bros. Inc. could acquire such OF the
finest quality OF Sumatra leaf as they
Eeeded at less than the price demanded
OF other consumers.
Untrue Statements Alleged.
False statements designed to conceal
the monopoly were made to Government
officers, II is charged, in addition to ex-
cessive and unearned salaries paid TO Of
flcers to conceal the great profits. II 10
said threats intimidation and persuasion
were used to discourage other importers
from attempting to compete with the
monopoly.
The individuals indicted were John II.
Duys, Jan II. Nienhuys, Henry ". Duys,
Benno Rosenwald. Abraham Blur,
Nathan Blur. Samuel II. Blur Joseph
r. Cullman, Joseph F. Cullman, Jr.,
Jan II. Kruse, William Quanjer. Hugo
Muller. Frederick Hirschhorn and All,e
L. Sylvester.
John II. Duys IL president and d.
rector of II. Duys & Co. and president
and director OF both corporations alleged
to have been formed to operate the mo-
nopoly; Abraham Blur is secretary II
both corporations, and Joseph r. Gull
man, Jr.. treasurer.
Jan II. Nienhuys Is vice-president Of
III. Duys & Co. Henry NJ. Duys is ser
rotary and trea surer OF II. Duys & Co.
Frederick Hirshchhorn is president Of the
General Cigar Company. Allie l.. Sy-
vester is president of the American c.
gar Company
Others indicted were copartners in TO-
bacco firms. which are alleged TO have
entered an Illegal combination. Penno
Rosenwald. Abraham Blur. Nathan
Blur and Samuel H Blur did business
as +. Rosenwald & Bro. The Cunmans
operated under the name of Cuilman
Bros. Jan II. Kruse. William Quanjer
and Hugo Muller were pS..iers in Kruss,
QuauJer & Co.
Voting Trust of Three Men.
The indictments charge tina. the DE-
PENDANTS placed all OF the capital stock
of the Sumatra Tobacco Import Cor
poration In the hands of John II. Duys,
Abraham Blur and Joseph +. Culiman,
Jr. as "A voting trust.
The two indictments were the result
Of an investigation made by Henry 4
Cutler and Rush II. Williamson Assist
ant United States Attorneys. They were
presented yesterday, and Federal Judge
Henry d. Clayton ordered that the de-
PENDANTS appear to-day to plead. The
law provides a penalty OF $1,000 and o~
years imprisonment upon conviction
upon each indictment.
II Is estimated that the Sumatra leaf
shipments which the alleged comhins-
ton controlled during two years were
worth $50. 900, 900.
II. Duys q Co. controls De Amstsr-
damsche shandelmaatschappv ~
Rotterdam. II is alleged that the agree
ment creating the monopoly provided
that none of the Sumatra leaf acquired
by the Dutch trading company should
be permitted to enter the United States
except through the companies operated
by the monopoly.