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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (July 11, 1907)
s THE MORNING OREGONIAN, THURSDAY, JULY 11, 190T. TOBACGO TRUST TO BE Government Begins Suit to Break Up World:Wide Monopoly. CRIMINAL CHARGE ALSO Moves for Injunctions to Prevent Re straint of Trade and for Receiv ers Expressly Bars Giving Officers Immunity. CREttTSAI. CHARGE LIKELY. NEW TORK, July 10. Jamei Mo Rrynolds, the pclal assistant Attorney-General who filed the complaint In the tobacco cases, aald that the Im mediate prosecution of ome of the defendants named In the case was highly probable; that the Sherman law, under which the action 1 brought, holds that a conspiracy In restraint of trade is a criminal offense. NEW TORK, July 10. The Government filed today in the Federal Court in this city a petition against the American To bacco Company, the Imperial Tobacco Company, the British. American Tobacco Company, the American Snuff Company, the American Cigar Company, the United Cigar Stores Company, the American Sto gie Company, the MacAndrews & Forbes Company, the Conley Foil Company and 68 other corporations and 79 Individuals connected, with the named companies. These corporations and persons consti tute what Is generally known as the To bacco Trust, and the petition directed against them sets forth the purpose of the Government to dissolve this trust by breaking up the agreements under which the consolidated corporations are working. In showing the growth of the trust since its organisation in 1890, the conclusion Is reached that at an early day, unless pre vented, It would completely, monopolize the entire tobacco Industry. Asks Injunction and Receiver. That all of the defendants are engaged In Interstate and foreign trade and com merce In tobacco and products manufac tured therefrom Is alleged by the petition. It is stated that the act of July 2, 1890, to protect trade and commerce and subse quent acts have been violated and the Government therefore seeks to prevent and restrain the unlawful existing agree ments, combinations and conspiracies and attempts to monopolize and to break up perfected monopolies. i The Government asks that the existing combinations, conspiracies and monopo lies be enjoined, and that each of the defendant companies be restrained from holding or controlling stock In any other. . It Is asked further that the Imperial To bacco Company be enjoined from doing business within the Jurisdiction of the United States unless It shall cease to ob serve the terms of Its agreement with the American companies; that certain of the defendants be declared combinations In restraint of trade, and be enjoined from engaging in interstate and foreign trade and commerce or that a receiver be ap pointed to take charge of their affairs and administer them so as to bring about conditions in harmony with the law. Growth of the Trust. The organisation of the tobacco trust, according to the petition, dates from the formation of the American Tobacco Company In 1890 to acquire five compet ing cigarette manufacturers with Joint assets much less than 23,000,000 and an annual consumption of leaf under 15,000, 000 pounds. The petition shows the sub sequent history, development and growth of that company until Its assets now ex ceed $276,000,000 and likewise the origin and manipulation of scores of created, acquired and controlled corporations utilized as agencies and to accomplish the general design; the progressive ab sorption and elimination of competitors and destruction of formidable opposition and the entry by defendants Into va rious departments of manufacture and trade, domestic and foreign, in tobacco products with intent to monopolize. The allegation is made that the mem berg of the combination have divided up the tobacco business of the world, assign ing to each some special territory for un molested exploitation. It is declared that the consolidated corporations annu ally use 475,000,000 pounds of domestio leaf and of the total product in the United States manufacture, sell and dis tribute more than 280,000,000 pounds (80 per cent) of the smoking and plug to bacco; 95 per cent of the snuff, 85 per cent of the cigarettes, 75 per cent of the small cigars, 95 per cent of the licorice produots, 80 per cent of the tinfoil pro ducts and 10 to 15 per cent of the cigars and stogies; that they are rapidly ac quiring control of the ordinary agencies Jobbers, wholesalers and retailers through which products are distributed. Of the total annual production of do mestic tobacco estimated at 800,000,000 pounds, 75 per cent is purchased by the American Tobacco Company and Its as sociates and allies at prices which the Government alleges to be unlawfully in fluenced by the combination. It is said this Is In defiance of the usual laws of trade where open competition by many separate and independent concerns con trol the prices. How Monopoly Was Gained. The petition continues: The American Tobacco Company of New Jersey, organized in 1890, with $25, 000,000 capital, took over the business of Allen & Glnter, of Richmond, W. Duke Sons & Co., of North Carolina, Kinney Tobacco Company, W. S. Kimball & Co. and Goodwin & Co., of New Tork, and thereby acquired control of the manufacture, trade and commerce in ci garettes. It was Immediately successful and shortly after its formation the In terested parties began to extend its op erations and with others united from time to time have steadily sought through it to acquire 'dominion power and to monopolize the different branches of the industry. This company was the prln clal agency through which the designs of the combination have been accomplished, but many defendant corporations have been organized, the control of many oth ers has been secured and In various ways these have been manipulated and util izer." i-. Th operations of the monopoly, accord ing to the petition, have been along this general plan: Tricks to Kill Competition. "To acquire through other confederat ed companies the business of successful opponents, taking from owners and man agers agreement not thereafter to engage In the tobacco business; to drive out other companies by destructive competition; to deter any who might wish to engage In the tobacco trade; and finally, to gain control of the agencies through which the tobacco products were distributed. It Is stated these things have been aeeom- nllihed by. acquiring control of the inter SMASHED ests in the stock of corporations there after operating ' without competition. Many kinds of unfair trade methods have been resorted to, it is said, a favorite one being to cause a corporation secretly controlled to advertise Itself as wholly Independent and freej from association with their associates and to offer its goods below cost, to imitate competing brands, and In these ways to use the same for the destruction of real inde pendents. Monpooly Is AVorld-Wlde. After reciting the bitter trade war be tween American and English concerns, the petition shows how the combination in these countries, wearying, of competi tion, in 1902 entered into written agree ments each not to interfere with the other along certain well-defined lines, and together forming the Imperial To bacco Company to carry on the trade and commerce In other countries without competition. The Government declares that this division of the world has ever since been strictly observed, and the three companies with their allies have all been operated In harmony. An Interesting chapter of the petition Is devoted to methods of distributing to bacco products. The American Tobacco Company In 1901, the petition states, se cretly acquired control of the United Ci gar Stores Company (for a long time tobacco stores established In. the large cities, by reason of the powerful support of the combination has quickly secured a dominating position' in the trade and is destroying competition. Agreement With English Trust. The Government Investigators have uncovered an agreement in writing, it is said, between the American. Company and the Imperial Tobacco Company, the Eng lish company, by which the American Trust binds itself to keep out of the English field and the Imperial Company reciprocates by withdrawing from the United States. The remainder of the world's trade in American tobacco under the terms of the alleged agreement is turned over to a company known as the British-American Company, which was organized in 1901, the date of the agreement. The American Tobaoco Company owns two-thirds of the capital stock of the British-American Company, It is said, and the Imperial Company the remaining third. Operating under the agreement with the British trust, it thus, according to the Govern ment's contention, has a virtual monopoly of trade In American tobacco. Immunity Bath Denied. A great feature of the complaint today is Its waiver of the right of demanding answers under oath from corporations and individuals named as defendants, as the making of such answers under oath, might confer immunity from prosecution. The Individuals named as defendants and as witnesses are: James B. Duke, president of the Ameri can Tobaee. Company; John Cobb, presi dent of the American Cigar Company: William K. Harris, chairman of the board of managers of the British-American To bacco Company; Caleb C. Dula, vice president of the American Tobacco Com pany and director of the American Snuff Company; Percival S. Mill, vice-president of the American Tobacco Company; W. C. Reed, agent in the United States for the Imperial Tobacco Company of Great' Britain; Thomas F. Ryan, Pierre Lorll lard, Peter A. El Wldener, Anthony N. Brady and practically all of the directors of the American Tobacco Company. Duke Denies Law Broken. President Duke said today: For the past year the Department of Commerce has been investigating our af fairs and has been furnished every possible facility by us. The Department of Justice has also conducted an inquiry. Since the Supreme Court gave legal sanction to this method of investigation, we have offered no obstacle to the Inquiry, but nave co-operated with the counsel for the Government. Our lawyers constantly advise that our. ex istence, business methods and success do not involve any violation of any law, and we ourselves know that they are not an In Jury for a minute to any class of the public, -consumers or tobacco producers or stores. Our success Is due to our having served the public better than anybody else. SOLDIERS SINK CRUISER (Continued from First Page.) tomorrow. The Third Infantry camp at Seaside is being conducted at this time as a camp of Instruction. Colonel McDon- ell is keeping his command busy with drills. Dress parade last night attracted most of the population of Seaside to the camp. The Third Oregon showed up to fine advantage. Following dress parade the Third Infantry Band gave a concert which was greatly enjoyed. Colonel James Jackson, Inspector-Gen eral, was among last night's arrivals. Governor Chamberlain Is expected tomor row. His visit to the camp will be marked by a dress parade and regimental inspec tion. SMALL WILL AWAIT NEILL Will Discuss San Francisco Strike With Commissioner. SAN FRANCISCO, July 10. President S. J. Small, of the Commercial Teleg raphers' Union, has determined to re main in the city and go over the San Francisco situation with United States Commissioner of Labor Neill, who Is expected to reach thlw city next Friday. lood Is the cause of all humors, eruptions, boils, pimples, scrofulous sores, eczema or salt rheum, as well as of rheuma tism, catarrh and other troubles. The greatest blood remedy for all these troubles, proved by its nnequaled record of cures, is Hood's Sarsaparilla In usual liquid form or In chocolated tablets known as Sarsatabs. 100 doses 51. SICK HEADACHE Positively cured by tbeM Little Pills. They also relieve Distress from Dyipirsita, Indigestion and Too Hearty Eating. A per. fcct remedy for Dizziness, Nausea, Drowsi. new, Bad Taste in the Mouth, Coated Tonga. Pain in the Side, TORPID LIVER. They Regulate the Bowels. Purely VegeUbU. Small Pill. Small Doe. Small Pries. 4 Jpg 1 1 VER iKr pj pills CRUSHED BY ILLS Concrete Building Crashes Down, Killing Three. NINETEEN OTHERS INJURED Philadelphia Accident Caused by Removal of Pllinc- Ttifnn 'Vnn Material Had Properly Set, .. According to Boss Carpenter. . PHIIjADELPHIA, July 10. Three men are known to have been killed, one was fatally hurt, and 18 others injured at the collapse of a new concrete building to day at the plant of Bridgeman Brothers' Company, manufacturers of steam fit ters' supplies, at Fifteenth street and Washington avenue, in the southwestern section of the city. The building was Just being put under a roof when a section about .30 feet in width and extend ing the entire depth of the structure col lapsed. About 3a men were at work on the side which gave way, and they were carried down In the debris. The body of Mar shall Hopkins,' aged 45 years, and the bodies of two unidentified colored men have been taken from the ruins. It Is believed, there are others burled under the heavy mass of concrete, as the con tractors have not been able to locate two whites and three colored laborers who were on the building when the accident occurred. The building, which was being erected as an annex to the. Bridgeman plant, col lapsed. It is believed, according to the ad missions of C. E. Miller, the boss car penter, because 'the piling were taken away from the concrete before It had properly set. Besides those carried to the ground in the fall, a number of per sons were struck by flying pieces of concrete and cut about the face and hands. Jacob Smith, one workman, was buried under a mass of concrete and crushed so that he cannot live. His back was broken. LUND FRAUDS CHANGE BANK IiEWISTON NATIONAL INDICTED OFFICIALS RESIGN. ' Implicated In Alleged Crooked Work - and Places Are Taken by Other Prominent Financiers. LEWISTON, Idaho. July 10. The res ignations of William F. Kettenbach. president; George H. Kesterf, cashier, and Clarence W. Robnett, bookkeeper of the Lewiston National Bank, were ac cepted at yesterday's meeting of the board of directors, at which time reor ganization of the bank was effected by transfer of a large block of stock. Ket tenbach, Kester and Robnett were con victed by the Federal Court at the recent session held In Moscow and all were sentenced to terms in the County Jail and to pay heavy lines for conspiracy to defraud the Government of valuable timber lands. They are now at liberty on ball pending appeal of their cases and reorganization of the bank at this time was believed to be to the best interests of the institution and of the community. F. W. Kettenbach, president of the Idaho Trust Company, was elected pres ident of the Lewiston National to suc ceed W. F. Kettenbach. Successors to Kester and Robnett have not yet been named. The new president stated that the move Is preliminary to a combination of Interests of the Idaho Trust Company and the Lewiston National Bank but said the time was not set for such action. New purchasers of stock were J. P. M. Richards, president of the Spokane Eastern Trust Company; F. W. Ketten bach, Chris Weisberger, Robert Schlei cher and Ira Small. All are prominent in Lewiston financial circles except Rich ards, who is one of the leading bankers of the Inland Empire. Kester Is to go to Eastern Washington, where he Is Inter ested in railroads. Kettenbach will de vote his time to private Interests in and about Lewiston. Irish Crown Jewels Stolen. DUBLIN, July 10. Another theft in Dublin Castle is reported. Jewelry valued at J7600 belonging to the custodian of the crown Jewels, Sir Arthur Vicars, was taken it Is stated, at the same time the Jewels of the Order of St. Patrick, valued at $250,000 were stolen. Thus far there is no clue to the thieves. WEDDING AND VISITING CARDS W.G.SMITH 6 CO. WASHINGTON BUILDING Fourth and Washington Streets J18 1 . A special line of ladies' fine Lingerie Waists, all this sea son's styles, beautifully trimmed, with lace and embroidery and good values at the regular prices of $2.25 and $2.50. Special for Friday only $1.59 NEW LEATHER BELTS 49c Ladies' Leather Belts in the newest shades of tan and brown, also black; well made, with fancy buckles; regular 60c val ues, special Friday for 49 LADIES' MUSUN GOWNS 98c A fine lin? of ladies' Muslin Gowns, trimmed with lace and embroidery both high and low neck. Regular $1.50 values, special Friday only 98t SHOP IN THE Coolest Store in Town The broad aisles and perfect ventilation of thin .tore Iniore arrester mfort than la to be had In any other establishment In this city. Drop Into oar reet room on the Second Floor, whether you hop here or not. A fine place to cool otf, and you're more than welcome. 'e A Sal Tremendous China Bargains Dinner Plates, regular value for 6, $1.35; spe cial for 6 (DC Pie Plates, regular value 6 for 68c; special, 6 45c Fruit Saucers, regular value 6 for 45c ; special, 6 30 C 8-in. Uncovered Vegetable Dish; reg. value, each, j a 22c ; special, each IrtC 10-inch Uncovered Vegetable Dish; reg. value, each, or 40c ; special, each C Shoes Women fs Comfortable Summer Shoes in Oxfords, Juliets and Strap Slippers, or in nurse and hospital Juliets with rubber heels. Shoes that are comfortable for warm weather wear. Heels in sev eral different heights. Toes come with or without tips. Here's solid ' comfort and good value in shoes, To day for gf S yfO the ions il '"Pair $4.25 aw m iJi m ! : 1 1 1 Special Sale of Baby Go-Carts Mail Orders Promptly Attended to Satisfaction Guaranteed Silverf ield's Specials $2.50 Lingerie Waists $1.59 SEE WINDOW DISPLAY FIFTH STREET Ladies9 Home of Odd Lines Decorated Semi-Porcelain Din ner Sets. Borders are decorated in roses, gold line. 50-piece set, regular g( $6.80 val.; special rr.s Breakfast Plates, regular value 6 for 98c; special, 6 for OOC Fruit Saucers, regular value, 6 for 52c ; special, x QtZ 6 for Jac Refrigerators 20 styles and sizes to choose from. All sell ing at special prices. Window Screens Come in 8 different styles and many sizes to fit all windows. All very low prices. Bread and Butter Plates, regu lar value, 6 for 53c ' o ' special, 6 for , ""Ct Women's jr For Tourist UOatS Half HAVE A NEW COAT FOR YOUR VACATION and pay only half regular price. Attend this sale, and be early, too, for there is a great variety of sizes and patterns for early choosers in this coat sale. These smart garments come in all-wool materials, in checks, stripes, plaids and fancy mixtures. The predominat ing colors are tans, greens and blues. They are in loose-fitting models, with bands and straps of self material or banded straps of taffeta silk. Many are trimmed with braids and buttons. The regular prices run from $8.50 to $26.00; V T f special price for To- (JJg tfCLll day i Regular $8.50 ralues ; special for Today Regular $15.00 values, special for Today $7.50 Folding Go-Carts with rubber tires and anti-friction fasteners, made plain, like cut on right. Splendid little Go-Carts from a well- ffc f known maker, specially priced. The regular $4.00 values T 5 sell Today for $2.95 and the $2.75 carts are only V Adjustable Go-Carts with reed body and reclining back, patent adjustable foot rest, patent anti-friction wheel-fasteners and rubber tires. Complete, with cush and parasol. Special prices as loiiows lor xoaay Regular $12.75 value ; spe- &q cial for Today pO.DU Regular $15.00 value; spe- rQ c?f cial for Today p7.0J Regular $17.50 val. ; spe- 1 )) cial for Today &1A.UI Regular $21.50 val. ; spe- ff fifi cial for Today &Ad.UU SILVERFIELD'S THE FASHION CENTER. MILLINERY AT LESS THAN HALF Radical reductions throughout onr Millinery Department on all our highclass street and dress Hats (Lingerie Hats ex cluded), also all our imported models, as follows: Hats, yaluos to $ 6.00, for $1.98 Hats, values to $ 7.00, for SS.98 Hats, values to $10.00, for S3.98 SEE WINDOW DISPLAY 67c KIMONO SPECIAL 67c We place on sale for Friday only a fine line of ladies' long and short Lawn Kimonos, in fancy patterns and polka, dots; regular $1.00. and $1.25 values for 67 SILVERFIELD STORAGE VAULTS Afford safety through the Summer for the or aire of furs and wraps aalnHt moths, dnnt and dnmpnetm. Every garment separately ventilated by OUR DRY COLD AIR METHOD. DO IT NOW or the little MOTH WILL JYOT forget you. Goods sent for oa request. Pars repaired or. altered during the Summer at Summer rates stored free. ttASHINGTO STREET Journal Patterns 60-piece set, $9.10 nr val.; special ipO.ZD 100-piece set, $13.50 V val.; special ....P'ZO 9-inch Uncovered Vegetable Dish; regular value, j a each, 26c ; special, each. J.OC Covered Vegetable Dish, regu lar $1.20 value ; spe cial, each . . .....' O UC meat Dishes and almost every thing in open stock A Cff patterns . . - 3 Semi-Porcelain 9-inch Berry Bowls, decorated in roses and gold line ; spe- p j cial ...... sfcOC Semi-Porcelain Quart Pitchers, decorated in roses and on eroid line Regular $18.50 values; special for Today $9.25 Regular $24.00 val. ; spe- 7 aOaO cial for Today .UU Regular $33.00 val. ; spe cial for Today $22.50 Regular $35.00 val. ; spe- cial for Today , p Regular $37.00 val. cial for Today. . , T. $26.00 Entire Corner Fourth and Morrison Streets for Friday TAILOR'D SUITS $19.65 Odds and ends in fancy eton, prince chap, and pony jacket suits, strictly this season's garments in all the newest checks, and stripes, which we place on sale Friday only at $19.65. See Window Display. SILK SHIRTWAIST SUITS $13.85 Splendid values in Silk Shirtwaist Suits, made of extra qual ity taffeta, ia black, and white checks and stripes; also col ored checks and stripes; some with lace yoke and cuffs. Extra special Friday $13.85 Li Li SIXTH STREET 10c and 15c Brings Special prices on small lots of very desirable semi-porcelain China in very pretty decora tions and shapes. Save about One -Third on any piece. Semi-Porcelain 9-inch Cake Plates, decorated in . A -roses and gold line..,. ,wC White Semi-Porcelain . g 9-inch Plates, each..., OC Bread and Butter Plates. Come in blue and gold. jr EflCll v C Fruit Saucers, come in jr blue and gold, each.... AlC Lawn Mowers 16 sizes and styles" from which to select. All selling at special prices. Coal Oil Stoves Two-burner, blue flame coal oil A O stoves ,special at . pr.D Regular $22.50 values; special $11.25 Regular $26.00 values; special. $13.00 ff UU