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