The Washington herald., 1907-07-10
TRUST WARONTO-DAY
Injunction Receiver Plan to
BE Launched.
TOBACCO MERGER HEADS LIST
Assistant Attorney General Purdy
VIII Have Petition Filed in New
York Circuit COuFt-Department of
Justice Admits step Most Drastic
Yet Undertaken by President.

The injunction-receiver plan for smash
ing the trusts. a measure which. as the
officers Of the Department OF Justice free
~ admit, is the most drastic yet under
taken by the Roosevelt administration,
will be launched in the United States Cir
cult Court in New York this morning.
Milton d, Purdy, Assistant Attorney
General originator. of the injunetion-re-
ceiver idea, left Washington at o'clock
yesterday afternoon. carrying with him
the original of II petition, with exhibits,
which the government will file against
the American Tobacco Company. the I'M
periaI Tobacco Company, and other cor
pora ions forming what is called the to-
bacco trust Mr. Purdy will probably
petition will be made by the district at
torney.
The prayers to the court, as told in The
Washington Herald yesterday morning,
viii ask that an injunction be issued re-
straining the corporations mentioned from
further engaging in interstate commerce.
and in foreign commerce, under the juris-
diction Of the United States; and, as an
alternative, the court will be petitioned
to appoint receivers TO take charge Of the
physical properties and assets of the com
panles and TO conduct them in accordance
with the law
Kin 10 Government Ownership.
That the plan OF appointing receivers
to take charge of the affairs OF law
breaking corporations, under certain con
dltions. is first cousin to government
ownership Of railroads, as exploited by
William J. Bryan. is The inevitable con
clusion Of persons who have heard the
Administrations new antitrust policy ex-
planned. While the proposal Of the De
partment OF Justice 90 place corporations
deemed TO be monop0istic. in the hands
I Of receivers does not constitute govern
ment ownership; it does when that Fed
erai government ms represented by its
courts, viii administer the affairs of the
offending corporations 20 the judgment
/ Of the receivers. and not at all according
10 the policies OF the corporations Gre
ators and present officers and directors.
In fact, as a Teceivership necessarily
I implies, the corporations would be taken
entirely out OF the hands Of their present
managers ard administered by represent
atives Of the government Of the United
States.
Not Applicable 20 All.
II is not pretended by the United States
that the receivership plan can be applied
or should be applied to all corporations
which are breaking the law, for it Is OBJ
vious. they say. that some OF the alleged
I law-brealgers can be brought TO book and
be compelled 10 operate along law-abidlng
lines without the application Of such a
drastic measure
It is coutended, however. that there are
certain trusts so organized and conducted
that the law as applied heretofore will not
afford rem =dy 1t is 10 these organiza-
tions. in which the seat Of the trouble
cannot be reached by customary means,
that il is proposed 10 ask for the appoint
ment Of receivers by the court.
The government lawyers who formu-
lated the plan Of injuncUon-reccivershi
procedure lay much stress on TIE suppo-
siiion that the appointment Of a receiver
TO manage the affairs OF a law-breaking
/ trust is n practical method OF making ghe
antitrust laws OF the country thoroughly
effective. 4 high government officer was
asked yesterday what he thought was the
practical effect of the dissolution Of the
first great suit instituted by the govern
ment in the Northern Securities case
Well" he replied. after a moments