IMPERIAL TOBACCO COMPANY. THE TRADING PROFITS.

Evening Post, Volume LXXV, Issue 35, 11 February 1908, Page 7

IMPERIAL TOBACCO COMPANY. THE TRADING PROFITS.

By Telegripli.— Treea Aesooiation.— CoD.vrigbt, * LONDON, 10th February. The trading profits of the Imperial Tobacco Company during tho past year amounted to two millions sterling. Tho United States Government recently asked for an injunction restraining the various corporations composing the Tobacco Trust, from operating a combination in restraint of trade between the States. Thero. are sixty-four subsidiary, or affiliated, corporations At tho hearing of tho case, admissions regarding the Anglo-American tobacco trade w<?re made uy Mr. Harris, vicepresident of the American Tobacco Company, Mr. Hornblower, counsel for tho Imperial Tobacco Company of Britain, in the cross-oxamination of Mr. Harris, elicited the statement that exportation of the manufactured product to Britain dropped between 1898 and 1901 from ) 500,000 to 275,0001b. Asked the cause, 'Mr. Harris said 4 "It wa,s absolutely impossible to sell our goods in competition with the English companies on account of the duty. 1 Therefore it was necessary to establish factories in Britain. Wo purchased Ogden's for £1,069,400, and sold it to the Imperial Company for £1,400,000, taking the payment mainly in securities of the Imperial Company. Those securities we subsequently sold with the exception of £150,000 common stock." The witness added that the Imperial Company never owned shares in tho American company, nnd said that neither he nor Mr. Duke, though they were directors, took an active part in the business of the ftnporial Company. He denied that there was a (Working arrangement between tha two companies in restraint of trade, declaring that the agents of* the Company engaged to purchase loaf competed with the agents of tho American company. The petition lodged by the Federal Government gives details of the organisation of the American Tobacco Company in 1890, and its subsequent growth till the present time, when its assets exceed 275,000,000 dollars. It alleges that the members of the combination have divided the tobacco business of the world, and annually purchase 475,000,0001b. of American leaf tobacco. They distribute 80 per ce-nt, of the smoking and plug tobacco, 95 per cent, of the snuff, 80 per; cent, of the cigarettes, 76 per cent, of the small cigars, 95 per cent of the liquorico products, 8 per cent. of the tinfoil, and 10 per cent, of the cigars and stogies. It refers to the bitter trade war between tho American and British concerns, alleging that m 1902 these, wearing of competition, entered into written agreements not to interfere with each other along certain well-defined lines, and together formed the Imperial Tobacco Company, to carry on trade and commerce in other countries without competition.