The Prince George's enquirer and southern Maryland advertiser. (Upper Marlborough, Md.) 1882-1925, 1921-01-07
LAW EVASION
BY TOBACCO men
The Federal Trade Commission
Claims Companies Are Drifting
Back to Forbidden Practices.
EVIDENCE TO ATTY. GENERAL.
Commission Also Makes Recommenda-
tions TO Prevent Possible Viola
tions Of Clayton
Act

Neutrality-suspicious. of the compa-
nles organized to take over the Ameri-
can Tobacco Company after its disso-
luton in 1911, under the Antitrust
laws, according to the Federal Trade
Commission, are drifting back into
forbidden practices. This was discov-
cred in an investigation of prices paid
tobacco growers in 1919 report of
which has been submitted to the house
of representatives in response to
resolution.
The commission announced that 1t
would give further consideration to
possible violations Of the Clayton act,
and also that at an early date evil
dence will be made available to the
Department of Justice "as to the pos
sible violation of the decree entered
in November, 1911, as a result Of the
dissolution suit"
Two suggestions were made for
strengthening the decree, as follows:
"That the provision relating to the
use of common agencies by the de-
fendant companies In the purchase of
leaf tobacco, which expired by limita-
ton November, 1916. be revived and
made permanent. That the provision
relating to the defendant companies
doing business under any other than
their own corporate name or that OF
a subsidiary corporation controlled by
them be made specific. so as to include
the purchase of leaf tobacco through
agencies not disclosed to the trade
The purchasing methods of large
buyers we're one of three causes to
which the commission attributed de-
clines in prices for the 1919 crop. The
other two were the lessening of for
eign purchases and contraction of do
mestic credits and the increase of low
grades for domestic absorption due to
crop conditions and falling foreign
markets. The commission found that
prices paid growers for 1919-20 COM
pared favorably with prices for the
previous year.
The commissions inquiry found
what was described as violations Of
the spirit Of the decree" and "viola-
tons of the decree" Discussing the
former It was pointed out that the
companies were enjoined for five
years. or until November, 1916, from
retaining or employing the same agent
or agents 'for the purchase III the
United States of tobacco leaf or other
raw material for the sale in the Unit
ed States of tobacco or other products
as that of any other of said corpora
tionS."
"In 191S," said the commission, ''the
American Tobacco Company, the Lor-
iIlard Company. the Liggett & Myers
Tobacco Company, the r. j. Reynolds
Tobacco Company, the Weyman-Bar-
ton Company and the Export Leaf
Tobacco Company, a subsidiary of the
British-American Tobacco Company,
all purchased on direct order through
the Universal Company OF its sub
salaries. ALI Of the companies noted
above, and. in addition, the George W.
Helme Company, purchased tobacco
from the Universal Company. In 1918
1919 large number Of instances are
cited showing orders through sub
sidiaries Of the Universal.
The commission said that If these
transactions had occurred prior to
1916 they would have been in violation
Of the decree. Attention was directed
to the fact that the Universal and In
ternational were organized soon after
the ive-year limitation ended, "also
that several officials of the Universal
Gomnany were formerly commercial
with some of the larger interests"